Start up costs-pvc-pvb-monthly payment


What would you include in your plan to convince your investors that your small business will generate income?

Meg wants to buy a new computer for her business with Internet access. The cost is $5100. The cable company charges $200 to install and $50/mo usage fee. Meg expects to buy with a down payment of $100, financing the balance at 8% over 4 yrs. She will sell the computer for $1000 when she is done with it and expects a cash flow improvement to her business of $500/mo due to the computer system. She is in the 25% tax bracket.

a) What are her start up costs?

b) What is the PVC?

c) What is the PVB?

d) What is the monthly payment?

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